Rhode Island’s Affordable Housing Trust Fund is launching a $1 million pilot program to expand the availability of new income-restricted homes.
According to the Providence Journal, the new “Turnkey Program” offers a direct subsidy to developers in exchange for an income restriction on the deed of the unit that would lasting for 15 years.
The new program differs from other state programs because developers only need to provide the deed restriction and the certificate of occupancy from locality where the unit is located to obtain the subsidy.
The median price of a Rhode Island house is $494,000; in the capital of Providence, the price was $705,000. The program’s creators stated the subsidy is meant to bridge the gap between what a newly constructed home would sell for on the open market and the maximum price to be sought if the unit is income restricted.
The maximum price of an income-restricted house will be determined by the number of bedrooms, local property taxes, insurance and (if applicable) condo fees.
“This expedites the process and removes our involvement prior to completion,” said Real Estate Development Director Anne Berman for RI Housing. “This is designed as a light touch and won’t be applicable in every case.”
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